Have a look at Interactive Brokers (IB), they are a true ECN broker with direct market access, as an example of a few that are popular. To open a day trading account your looking at around $50,000 for full flexibility.
IB for instance is not a retail broker, they are used by private high net worth traders and/or commercial trading firms. In hindsight, this is the rawest account that a trader can obtain.
I wish I had $50,000
So far, Im a poor beginner, so Ill concentrate on retail brokers. Especially, as you said, it`s ok to trade with them.
The main thing is to choose secure one.
Indeed, IB gives a large variety of opportunities for investors with great skills and budget. But even for the majority of traders who trade with up to $10K depositing an IB account it to little, as $10K is the minimum for a beginner with them.
Whats wrong with welcome bonuses? I considered this feature as an advantage. I think, its a good chance for beginners to start. It can help for those, who don`t have big starting capital.
Sometimes, minimal deposit is quite high and I want to start with about $100.
Bonuses can have so strict rules that you even won’t be able to withdraw the money you’d deposited… So be careful and read the conditions. Sometimes they are not worth of investing.
Mmmm… $100 is not a perfect sum, but for a beginner… it is a one more chance to practice
Anyway, you’ll risk only with 100 bucks, not more, so try to trade them and look if you can do that profitably
I also support to invest a little amount that is possible for you easy to deposit , You should not go to difficulties for high investment. $100 tp $200 is an ideal amount . It can be used in cent accounts or standard accounts according to your trading needs.
If a broker is worth its salt then it wont need to offer welcome bonuses.
These ‘teaser bonuses’ are what you find on online casinos - there is a reason why all UK brokers will be banned from advertising welcome bonuses in a matter of months…
Expect some big changes to come soon, as seen below.
ECN and STP both are well! But I seem cent/micro type account would be much appropriate for you since you are a novice trader and interested on scalping trading! In addition, please check the trading spread feature before using their live trading service! For scalping, you have to also consider slippage, requotes and execution!
If you want to scalp, then you need a broker who doesn’t charge commissions because in the long term there will be no point of this trading style as the commissions will eat your profit. The other issue is that most brokers which do not have commission, have higher trading costs as actually they’re hiding the commissions in the spread which is marked-up so I’m guessing this will not suit you as well. Broker with low core spread, NDD - Non Dealing Desk and lower or even no commission will be best for scalping but you need to check carefully the conditions of each broker.
If you are a total newbie then I would suggest to keep studying and trading on demo. You shouldn’t be in a hurry to open live account yet. Better to register demo account with several brokers so you can see what services and conditions they offer along with the trading costs. Then, after a while you will have enough experience and knowledge to decide which strategy and what type of broker will be best for you.
I think if beginner choose cent account is goo for learning as second step after passed on demo account with confidence, might not all broker has these type account, I am also still using cent account and spent small capital for trading
I also use bonus amount in trading, as you say it is difficult to manage bonus because they involve strict terms and conditions . Even then too bonus are worthy because if you do not get profit in hand you can get a precious experience of live trading.
Sure I’ve opened demo accounts with Alpari and JustForex so far.
Trading process is the same on different accounts, but conditions are a bit different.
I tried standard (classic) and ECN accounts (Alpari has some different types of ECN acounts). ECN accounts have lower spreads, but have comission. Still don’t know what is more beneficial.
Everything becomes to be more clear.
Just wanted to try JustForex’s NDD accont, but today they changed their trading conditions and don’t have NDD anymore. Actually, they changed everything and now have completely different account types and I have to see into it again. Fortunately, they are similar to previous ones and seem even more profitable.
But they have new mini accounts and I can’t understand what are they needed for. It’s not the same as cent.
Hey Jusuf_Haz, thanks for sharing your feedback. I think that the trading process itself should be the same everywhere. As for the conditions, it really depends on the broker. Good that you are testing different options.
Yes, usually ECN accounts have commissions, if you are a scalper probably it would be expensive for you. But don’t you think that it would be better if you just choose a broker with only one type of account? These mini or cent accounts sound too complicated. I personally prefer to not deal with these multiple types of accounts and conditions as it’s too hectic for me and often leads to unexpected costs and confusion. Trading is complex thing and I prefer to have simplicity offered by the broker
The removal of the NDD accounts is not a good sign for me, it means that this broker is a market maker. My advice is to stay away from these guys.